After reversing from its highs achieved last week, the USD/CAD has found what appears to be durable short-term support and moved upwards this morning.
The USD/CAD is trading near the 1.30045 vicinity of this writing. After falling through the 1.30000 mark on the 8th of July, in early trading this Monday the USD/CAD currency pair has been able to muster upwards bullish behavior and is again threatening key resistance levels which if toppled could spark additional speculative action to the upside.
Bullish Behavior in USD/CAD has started to Build Again via Technical Action
The USD/CAD continues to traverse within a range that is challenging long term highs which have not seen a serious test of values above the 1.31000 mark since November 2020. Fundamentally the price of energy products remains high, but oil has seen some of its higher values erode over the past few weeks incrementally and other commodity prices have begun to stumble as well. This is not written as a prediction that crude oil prices are going to remain stable and even move lower, merely an observation of market action and the potential that inflation threats are starting to de-escalate.
- The USD/CAD 1.30000 mark remains a critical psychological mark for traders.
- If the USD/CAD breaks above and sustains the 1.30100 level it could be a bullish signal.
The USD/CAD was able to touch a high of nearly 1.30880 on the 5th of July. On the 6th of July the price of the USD/CAD currency pair once again moved towards this mark, but the price reversed lower and on the 8th of July the Forex pair touch nearly 1.29355. In early trading today after testing these depths again, the USD/CAD has begun to climb and its ability to topple the 1.30000 with relative ease is noteworthy.
A Slight Move Higher Could Signal Bullish Behavior has Room to Roam in USD/CAD
The USD/CAD remains within the upper tiers of its value technically and while the run higher on the 5th of July did run out of power, it remains an interesting target for traders with a bullish perspective. If the USD/CAD is able to break above the 1.30100 resistance level which is relatively nearby this could be a signal that buying firepower could cause technical traders to believe speculative positions aiming for the 1.30150 to 1.30200 could be intriguing wagers, particularly considering the USD/CAD traded near 1.30300 at the end of last week.
Bullish speculators should practice their risk management wisely. The USD/CAD like all other Forex pairs is proving volatile within the current trading landscaped due to complications the U.S Federal Reserve is causing via its interest rate policy and its unclear outlook as U.S economic conditions seemingly offer conflicting data on a daily basis.
Canadian Dollar Short-Term Outlook
Current Resistance: 1.30125
Current Support: 1.29850
High Target: 1.30525
Low Target: 1.29100